|
Report Date : |
26.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
AFRICAN
COMMODITIES DMCC |
|
|
|
|
Registered Office : |
Jumeirah Lakes
Towers, AG Tower, Level 22, Office A2 E & L, Sheikh Zayed Road, 113709
Dubai |
|
|
|
|
Country : |
United Arab Emirates |
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
31.07.2004 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
Distributors of steel,
iron and other metal products and chemicals. |
|
|
|
|
No. of Employees : |
15 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
Status : |
Good |
|
Payment Behaviour : |
No complaints |
|
Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
United Arab Emirates |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
United Arab Emirates - ECONOMIC OVERVIEW
The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Successful efforts at economic diversification have reduced the portion of GDP based on oil and gas output to 25%. Since the discovery of oil in the UAE more than 30 years ago, the UAE has undergone a profound transformation from an impoverished region of small desert principalities to a modern state with a high standard of living. The government has increased spending on job creation and infrastructure expansion and is opening up utilities to greater private sector involvement. In April 2004, the UAE signed a Trade and Investment Framework Agreement with Washington and in November 2004 agreed to undertake negotiations toward a Free Trade Agreement with the US, however, those talks have not moved forward. The country's Free Trade Zones - offering 100% foreign ownership and zero taxes - are helping to attract foreign investors. The global financial crisis, tight international credit, and deflated asset prices constricted the economy in 2009. UAE authorities tried to blunt the crisis by increasing spending and boosting liquidity in the banking sector. The crisis hit Dubai hardest, as it was heavily exposed to depressed real estate prices. Dubai lacked sufficient cash to meet its debt obligations, prompting global concern about its solvency. The UAE Central Bank and Abu Dhabi-based banks bought the largest shares. In December 2009 Dubai received an additional $10 billion loan from the emirate of Abu Dhabi. The economy is expected to continue a slow rebound. Dependence on oil, a large expatriate workforce, and growing inflation pressures are significant long-term challenges. The UAE''s strategic plan for the next few years focuses on diversification and creating more opportunities for nationals through improved education and increased private sector employment.
|
Source : CIA |
Company Name : AFRICAN
COMMODITIES DMCC
Country of Origin : Dubai, United
Arab Emirates
Legal Form :
Limited Liability Company
Registration Date : 31st
July 2004
Trade Licence
Number : 30066
Membership Number : 0070
Issued Capital : US$
54,795
Paid up Capital : US$
54,795
Total Workforce : 15
Activities :
Distributors of steel, iron and other metal products and chemicals.
Financial Condition : Good
Payments :
Nothing detrimental uncovered
Operating Trend : Steady
Person Interviewed : Ekta Gupta, Finance Manager
AFRICAN COMMODITIES
DMCC
Registered &
Physical Address
Location : Jumeirah Lakes Towers, AG Tower,
Level 22, Office A2 E & L
Street : Sheikh Zayed Road
PO Box : 113709
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 4408200
Facsimile : (971-4) 4475211
Mobile : (971-50) 2804952 / 6518348
Email : vishal.aggarwal@afdmcc.com
/ ekta.gupta@afdmcc.com
Premises
Subject operates from
a small suite of offices that are rented and located in the Central Business
Area of Dubai.
Name Position
·
Raj
Kumar Gupta Managing
Director
·
Ekta
Gupta Finance
Manager
·
Vishal Agrawal Investment
Relations Manager
·
Omar Farooq Sales
Manager
Date of Establishment : 31st
July 2004
Legal Form :
Limited Liability Company
Trade Licence No. : 30066
Membership No. : 0070
Issued Capital : US$ 54,795
Paid up Capital : US$ 54,795
Name of Shareholder (s) Percentage
·
Trans
Global Group Investment Ltd 100%
British Virgin Islands
·
Parco
Enterprises Nigeria Ltd
Lagos
Nigeria
Activities: Engaged in the import and distribution of
steel, iron and other metal products and chemicals.
Import
Countries: Europe and the
Far East.
Operating Trend: Steady
Subject has a
workforce of 15 employees.
Financial
highlights provided by local sources are given below:
Currency: United
States Dollars (US$)
Balance Sheet 31/12/10 31/12/09
Non-current assets
Property, plant and
equipment 4,138,745 2,561,826
Investment
properties 323,581 -
Current assets
Inventories 2,051,189 7,900,246
Trade and other
receivables 83,872,579 66,732,683
Cash 115,659 63,027
Other current
financial assets 22,066 5,003,967
86,061,493 79,699,923
Current liabilities
Bank borrowings (25,902,987) (22,246,215)
Trade and other
payables (11,276,918) (4,791,513)
(37,179,905) (27,037,728)
Net current assets 48,881,588 52,662,195
Non-current
liabilities
Staff-end-of
service gratuity (55,321) (30,377)
53,288,593 55,193,644
Share capital 54,795 54,795
Retained earnings 52,307,832 50,536,057
Equity funds 52,362,627 50,590,852
Shareholders’
current account 925,966 4,602,792
53,288,593 55,193,644
Statement of
Income
Revenue 300,104,214 302,602,834
Cost of sales (269,333,885) (271,093,424)
Gross profit 30,770,329 31,509,410
Other operating
income 861,883 419,093
Staff costs (1,141,616) (558,529)
Depreciation
expense (297,485) (63,789)
Other operating
expenses (269,608) (151,315)
Provision for doubtful
debts - (8,165)
Impairment loss - (507,740)
Profit from
operating activities 29,923,503 30,638,965
Interest income 71,567 34,141
Finance costs (1,223,295) (1,167,494)
Profit for the year 28,771,775 29,505,612
Local sources
consider subject’s financial condition to be Good.
·
HSBC
Bank Middle East
Deira Souk Branch
PO Box: 66
Dubai
Tel: (971-4) 2535000
No complaints
regarding subject’s payments have been reported.
During the course
of this investigation nothing detrimental was uncovered regarding subject’s
operating history or the manner in which payments are fulfilled. As such the
company is considered to be a fair trade risk.
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.53 |
|
UK Pound |
1 |
Rs.86.82 |
|
Euro |
1 |
Rs.69.03 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
---- |
NB |
New Business |
---- |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.